Is Celanese Corp. overvalued or undervalued?

As of 18 February 2025, the valuation grade for Celanese Corp. has moved from attractive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued, particularly in light of its financial metrics. Key ratios include a Price to Book Value of 1.82, an EV to EBIT of 21.34, and an EV to EBITDA of 11.97, which suggest that the company's valuation does not align well with its performance, especially given its negative ROE of -1.64%.
In comparison to peers, Celanese Corp. shows a stark contrast with Linde Plc, which has a P/E ratio of 35.40 and Ecolab, Inc. with a P/E of 41.56, both of which are rated as fair. Additionally, Dow, Inc. and LyondellBasell Industries NV are classified as very attractive with P/E ratios of 32.89 and 11.05, respectively. The recent performance of Celanese Corp. has also been underwhelming, with a year-to-date return of -21.11%, significantly lagging behind the S&P 500's gain of 2.44%.